Understanding the Home Mortgage Calculator 7/1 ARM

Is a home mortgage calculator 7/1 ARM the right option for you? The only way to determine this is to do a little research on the subject, though the following list of adjustable rate home mortgage pros and cons will certainly get you off to the right start.

There are lots of debates in the world of home loans, making it difficult to know what the “right” answer is in the world of mortgages. To make matters even trickier, a whole lot of these debates rely on speculation on the future of the housing market to make their cases. And no debate relies on speculation quite as much as discussions of interest rates, specifically whether it’s better to sign up for a fixed rate or an adjustable rate mortgage (ARM).

The debate here is simple enough to understand, even if it’s difficult to definitively come down on one side or the other of it. Fixed rate mortgages are good if interest rates are low when you sign on to your loan and if you expect rates aren’t going to go any lower anytime soon. Adjustable rate mortgages are good if you think interest rates are going to fall in the future and will ultimately average out lower than what you’d get if you signed up for a fixed rate mortgage right now.

And that’s about it. While you will need to use tools, like a home mortgage calculator 7/1 ARM, to finally figure out what sort of loan term is right for you, the debate doesn’t have to be much more complicated than considering a few pros and cons of each. Let’s start by looking at the pros and cons of an adjustable rate mortgage.

  • PRO: Lower initially offered lender rates on ARMs mean it’s easier to qualify buyers, which means ARMs make it easier to get a property or to get a property that’s more expensive than you initially planned on purchasing.
  • CON: It’s possible the rate of your loan will rise substantially over the life of its repayment. ARMs have been known to rise half a dozen percentage points over the course of just a couple of years.  And if the government ends up tightening up the rules for lending or raising interest rates, this could end up hurting a homeowner with this type of loan.
  • PRO: If you have an ARM and interest rates begin to plummet you will benefit from these falling rates and pay less on your loan. People with fixed rate mortgages can take advantage of dropping interest rates as well but only if they refinance their loan, a process which can be long, complicated, and whose various fees can negate whatever savings the newly available lower interest rates would create.
  • CON: It’s a little more difficult to understand an ARM than a fixed rate mortgage. A fixed rate loan is simple to understand- here is your interest rate, it isn’t going to change. An ARM works a lot more flexible and there constant shifting can frustrate property owners, especially when they rise.
  • PRO: Great for individuals who are looking to only stay in their house for a couple of years before either flipping it or simply moving up to a new property. Also can be good for paying off loans quickly, as money saved due to a dropped rate can be paid directly to the principle of the loan.


Not all home mortgage calculator resources are created equal.  Our website is designed to help consumers wrap their minds around the process of taking out a home loan, budgeting monthly payments, and finding ways to slash interest rates.

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